ENG-1963 — Page 112

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INDUSTRY AND TRADE

of industrial and commercial concerns and to civil servants. The four basic courses offered comprise the internationally recognized programme of training within industry. Firms are invited to nominate members of their staff for instruction as trainers and these then return to their own organizations to run courses them- selves. The section also offers courses for supervisors of those organizations which do not wish to employ trainers of their own. The scheme is well supported and to date altogether 3,770 persons have been trained in the four programmes.

INTERNATIONAL TRADING PROBLEMS

The uncertainty over the future of the Colony's exports to Britain, which had persisted throughout the previous year as a result of the British Government's negotiations for entry into the European Economic Community, was to a large extent dispelled by the breakdown of these negotiations in January. The negotia- tions had, however, stimulated great interest locally in the markets presented by the Community for the type of goods produced by the_Colony, and the year saw a considerable increase in exports to each of the Six, with the exception of Italy. Hong Kong exports to countries in the European Free Trade Association-likewise recorded satisfactory increases.

Another feature of the year with significance for Hong Kong's trade generally, which was given close study in the period under review, was the Anglo-Japanese Treaty of Trade and Navigation, which was ratified in February. The treaty has among its principal objects the gradual removal of restrictions on the entry of Japanese goods into Britain, an objective assisted by the parallel disinvoca- tion by Britain of the use of Article XXXV of the GATT in respect of Japan and there was a strong presumption that its implementation would result in increased competition in the British market for a wide range of Hong Kong products. The treaty con- tains however a number of safeguards against damage to the established trade of manufacturers in Britain and its dependent territories arising from a sudden liberalization of entry of Japanese imports, but these can only be invoked on behalf of a dependent territory which has similarly disinvoked the use of Article XXXV of the GATT. This matter, and the connected question of the